Extra income from renewable energy
The feed-in-tariff for renewable power and heat can appear quite complex, but when we talk we’ll be able to explain it all to you in plain English and give you a clear illustration of how you might be able to earn extra income from renewable energy.
Introduced by the Department of Energy and Climate Change (DECC) on 1 April 2010, the Feed-in Tariff (FiT) is an initiative to help boost the uptake of Solar PV and other small scale electricity generation technology.
The FiT rewards consumers with an extra income for choosing clean, renewable energy.
The FiT works alongside the Renewables Obligation (RO) and the Renewable Heat Incentive (RHI) due to be introduced in the summer 2013.
More information about the incentives may be found on the DECC website: www.decc.gov.uk
All solar PV installations to take place on or after the 1 August 2012 can look forward to:
- Feed-in Tariff guaranteed lifetime to 20 years
- Increased export tariff to 4.46p/kWh paid for all surplus electricity exported back to the national grid
- Retail Price Index (RPI) – linked generation and export tariffs (with the potential to increase as the RPI increases)
- Reduced PV system prices mean a potential return on investment (ROI) of 15.53%